Return on equity is a ratio generally used to evaluate
A) liquidity.
B) solvency.
C) profitability.
D) all of the above.
E) none of the above.

Question

Quizplus · Accepted Answer

Return on equity (ROE) is a measure of a company's profitability that takes a company's annual return (net income) divided by the value of its total shareholders' equity. It is used to assess how effectively a company uses the money invested by its shareholders to generate profits.

Return on Equity Is a Ratio Generally Used to Evaluate